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CROPS AND MARKETS
TOBACCO (Page 223)
SEPTEMBER 5, 1949
' ; CONTENTS j : <
CQTTON AND OTHER FIBER
Cotton-Price Quotations on Foreign Markets..,., 235
Chinese Cotton Consumption Declines in 1948'- "49". .".","."... 236
Philippine Cotton Consumption Drops, , , 237
Italian Silk Industry Progress Retarded.".'., ...... ,,..", 238
FATS AND OILS
Argentina Makes Significant Changes in Oilseed
Angola Expects Larger Oleagino us Output. . .. .. ..... . . . . 230
Pakistan Harvests Smaller Flaxseed Crop..'..'.'....,..,., 231
GRAINS, GRAIN PRODUCTS AND FEEDS
Burma Plants Less Rice But Maintains 1949 Exports 226
Italian Rice Crop Improves. , , , • 227
Spain Plants Record Rice Acreage....,,..,....".".,',,.,',, 227
LIVESTOCK AND ANIMAL PRODUCTS
Hog Situation in Argentina Appears Brighter., ,, 232
U.K. Livestock Numbers Continue Postwar Increase...... 232
Argentine Cattle Prices Increase. 233
New Zealand Butterfat Prices Up..,..,.,,.,.,......".... 234
French Dairy Supplies Affected by Drought. .,.,."."...., . 234
Forecast 6 Percent Drop in North Temperate Zone
Tobacco Product ion n ................ o ................ . 223
Venezuela's Postwar Coffee Production Steady, ......... 228
Angola's 1949 Coffee Crop Larger..... 228
Cacao Production In New Hebrides Declining.,,,,",..,,., 229
UNITED STATES DEPARTMENT OF AGRICULTURE
OFFICE OF FOREIGN AGRICULTURAL RELATIONS
WASHINGTON 25, D.C.
Foreign Crops and Mrrkets
Vol. 59, Bo. 10
Philippine copra prices have moved rapidly upward. Luring June
copra was quoted at SlUo.OO per short ton c.i.f. Pacific Coast and
about $135*00 f .0,13, European shipments. By the end of August
Philippine sellers were asking $127.50 to $190.00 c.i.f. Pacific Coast.
Lard was derationed in Denmark on August U, 19^-9 according to the
American Embassy, Copenhagen. The high price of Danish lard in world
markets did not permit exports and the domestic sup-plies increased,
obviating the need for rationing.
P OPE IGF CROPS AFP MAPJC5T5
Published weekly to inform producers processors, distributors and
consumers of farm products of current developments abroad in the crop and
livestock industries, foreign trends in prices and consumption of farm
products, and world agricultural tra.de. Circulation of this periodical
is free to those needing the information it contains in farming, business,
and professional operations. Issued by the Office of Foreign Agricultural
Relations of the U.S. Department of Agriculture, Washington 25, D.C.
September 5, 191*9
Foreign Crops and Markets
.FORECAST 6 PERCENT DROP IN NORTH TEMPERATE ZONE TOBACCO PRODUCTION
Based on preliminary estimates, the North Temperate zone's harvest
of leaf tobacco during 19^9 is forecast at 5,lk0 million pounds, or about
6 percent below the 19^8 production of about 5,^70 million pounds.
The 19^9 crop forecast is about 3 percent below the 19^7 harvest
but still 15 percent above the prewar, 1935-39, average. The decrease
in production estimated for China more than accounts for the overall
decline. The combined production for all countries, excluding China,
would show a slight increase over 19^8. Since reliable estimates are
still unavailable for China and several other important producing coun-
tries the present forecast is subject to considerable change.
As a result of increased production in the United States, the north
temperate zone's 19*1-9 production of flue-cured tobacco, the principal
type entering world trade, may be slightly above the I9U8 output. It
is anticipated, however, that a large part of the increase in 19*1-9 produc-
tion in the United States will be offset by a smaller crop in China.
In the case of oriental or Turkish-type tobacco, another important type
entering world trade, it is anticipated that the 19*+9 harvest will be
somewhat above the 19*+8 output.
The 19^9 production of light air -cured types, which are grown to
some extent in most tobacco producing countries, is expected to be below
the 19^8 output, as a result of the anticipated decline in China. The
production of dark types, including cigar leaf, may about equal the 19*1-8
North America . Canada's 19*+9 tobacco crop is estimated at 127 mil-
lion pounds, or about the same as in 19*1-8. The area planted to tobacco
was somewhat larger in 19*1-9, but a decline in the yield per acre is ex-
pected as result of unfavorable weather during the growing season. The
indicated 19^9 crop is 19 percent above the 19*1-7 harvest and 66 percent
above the 1935-39 average of about 77 million pounds.
The United States crop was forecast as of August 1 at 2,019 million
pounds, as compared with the 19^8 harvest of 1,982 million pounds and the
prewar, 1935.39, production of 1, 1^60 million pounds. The 19*+9 indicated
production of flue -cured leaf of l,l6l million pounds is about 7 percent
above the igkQ harvest of 1,090 million pounds. A decline of 11 percent
is forecast for fire-cured leaf, 3 percent for Bur ley, 1 percent for
dark air-cured and 5 percent for cigar. An increase of 7 percent is
forecast for Maryland leaf.
Europe. The I9J+9 production of tobacco in Europe, excluding the
U.S.S.R., is estimated to about equal the large 19*1-8 crop. Increases
over 19*1-8 are reported for France, Germany, Hungary and Switzerland. Lower
production is reported for Czechoslovakia, Italy, Sweden and several other
minor tobacco -producing countries. The total 19*1-8 production for Europe
is estimated at 800 million pounds from 920,000 acres, as compared with
a revised I9U8 production of 800 million pounds from 905,000 acres and
the prewar, 1935-39, average of 675 million pounds from 680,000 acres.
September 5, 19^9 Foreign Crops and Markets
U.S.S.R. Authentic information on tobacco production in
the U.S.S.R. in recent years is not available, but unconfirmed
reports indicate an output in I9I4-9 approximately 8 percent
above 19^8 but about 20 percent below the prewar average pro-
duction of around 525 million pounds .
Asia . Reliable estimates of China* s 19^9 tobacco crop are
unavailable, but fragmentary reports indicate a decline of approxi-
mately 25 percent from the large I9U8 production of 1,593 million
pounds. Japan's 19^9 crop is also expected to be below the 19^8
harvest, but the indicated production for Korea is above 19^8.
Turkey's I9J+9 crop is forecast at 198 million pounds, or 13 per-
cent above the 19^8 harvest, but still 10 percent below the record
19^7 outturn of 220 million pounds. For other Asia Minor countries
including Iran, Iraq, Syria and Lebanon, which produce tobacco
somewhat comparable in type to Turkish leaf, I9I+9 harvests are
generally expected to approximately equal I9U8 productions. For
all the temperate zone of Asia, 19^9 harvests are estimated at
1,730 million pounds from 1,800,000 acres. This compares with
2,130 million pounds from 2,080,000 acres in 19^8 and the prewar,
3-935-3-9, average of 1,700 million pounds from 1,675,000 acres.
Africa. The 19^+9 production of tobacco in the North Temperate
zone countries of Africa is estimated to be somewhat below the 19^8
output, largely due to less favorable weather during the growing
season. The combined production of Algeria, Morocco and Tunisia
is estimated at ^5 million pounds from about 59,000 acres, as
compared with k-8 million pounds from 55^000 acres in 19^8 and a
1935-39 average of about kl million pounds from
This is one of a series of regularly scheduled reports on world
agricultural production, approved by the- Off ice of Foreign Agri-
cultural Relations Committee on Foreign Crop and Livestock Sta-
tistics. For this report, the. Commit tee : was composed of Clarence
M. Purves," Acting Chairman, Clarence E. Rike, Lois B. Bacon,
Tilmer 0. Frige brets on, and Mary L. E. Jones.
Foreign Crops and Markets
Vol. 59, No. 10
GRAINS , GRAIN PRODUCTS AND FEEDS
BURMA PLANTS LESS RICE BUT
MAINTAINS 19^9 EXPORTS
Burma 'a rice acreage planted in I949-5O is reported at 20 percent less
than in the year before and only 63 percent of the prewar average. The
sown acreage is unofficially forecast at around 8,000,000 acres compared
with 9,921,000 acres in 1948-49 and the average of 12,671,000 acres during
the prewar (1935-36/39-40) period.
Rice (milled) exports by country of destination, January-
June I949 with comparisons
• 1948 1/
: January -June l/
: 2/ i;6
: 4/ 233
: 2/ 32
5 ■ 0
: 2/ 106
: " 28
: 5r 101
Other Europe. . .
l/ Preliminary. 2/ Netherlands Indies. 3/ Not separately reported, k/ To
Japan, Korea and Taiwan. 5/ Includes 28 million pounds to Philippines, 33
million to Japan and Ryukyus , and 39 million to Pakistan.
Compiled from consular reports.
September 5, 19*5-9
Foreign Crops and Markets
Planting "began in May in Lower Burma and June and July in Upper Burma,
and transplanting extended through August. The Government's administrative
machinery to make agricultural loans to growers reportedly has "been dis-
rupted except in the larger cities. Many villages have "been "burned in the
Burmese-Karen warfare, and the growers have abandoned homes and fields for
Burma's exports, of the 19^8-^9 crop have "been maintained surprisingly
well so far in 19^9, Exports of 22h million pounds of rice and k million
pounds of rice bran in July brought total January- July exports to 1,927
million pounds of rice and 56 million pounds of bran. While shipping has
been arranged for deliveries of 170 and 160 million pounds of rice in
August and September, respectively, exports during the last half of 19^9
are not expected to average more than 150 million pounds a month.
•CEOP'ilMPSD^S " ■ •
The .Italian rice crop will be larger than was expected early in the
season, 'Occasional rains and warm weather in July improved yields, fol-
lowing unfavorable climatic conditions in April and May.- Despite efforts
. by growers to intensify transplantings, the 19^9 rice area is 9 percent
less than in 19^8-. The acreage planted was estimated -by^July 31 at 319,000
"acres compared with 352,000 acres in the preceding year"!
The principal reason for the acreage decline" was the large stocks-
he Id over at the beginning of the season. Producers during 19^8 were
unable to market their export surplus at satisfactory prices. Storage
.facilities were heavily taxed, and it apparently was believed a large
crop this year would have resulted in dumping and lower prices. Rice
exports from Italy during the first 5 months of 19^9 are reported at-
33 million pounds in rough rice equivalent (probably about 25 million
.; pounds of semi -milled) . .
• SPAIN- PLANTS RECORD • '
' RICE ACREAGE
Spain planted a record rice acreage in 19^9, approximately 11+2,000
acres compared with 137,000 acres in the preceding year. Fields on the
whole as of July 21 were in good condition, and a larger harvest was
predicted than in the year before.
Fertilizer supplies available- for rice were slightly larger this'
year. Growers reportedly were allotted around 38O pounds per acre as
compared with 350 pounds in 19^8." It is estimated that a minimum of
about 1+80 pounds per acre must be available before Spain reaches its
former production of rice per acre. Spain's prewar yields per acre,
averaging around 12k bushels of rough rice, were the largest in the
Foreign Crops and Markets
Vol. 59, No. 10
VMEZUELA'S POSTWAR COFFEE
PRODUCTION STEADY .
Venezuela's 19^9-50 coffee production is forecast at 750,000 to 800,000
bags, according to the American Embassy in Caracas. This compares with
about 800,000 bags in 19^8-^9, 780,000 bags in 191+7-^8, and 800,000 bags
in 19hG-k"(. The annual average prewar (1935-39) output amounted to 9*4-0,000
The Director of the Coffee Section of the Venezuelan Ministry of Agri-
culture states that the new crop of highland coffee will be well above last
year's production as a result of exceptionally favorable weather prevailing
in the important highland coffee growing states of Tachira, Merida, and
Trujillo. On the other hand, the severe drought in the lower coffee grow-
ing states of Miranda, Aragua, and Carabobo will result in a poor crop of
lowland coffee. Since the highland coffee is preferred by foreign buyers
and is generally produced for the export trade rather than for local con-
sumption, an unusually large percentage of the 19^9-50 crop may be avail-
able for export. In view of the fact that the highland grades consistently
command higher prices, in the world market, the total f inancial return from
the new coffee crop may be the highest in Venezuela's history.
Coffee exports from Venezuela during the first 6 months of 19^9
amounted to 213,000 bags, considerably less than the 30*+, 000 bags ex-
ported in the corresponding period of 19^8. This reduction resulted
mainly from the high prices obtained for coffee on the world market in
19^8 which greatly stimulated Venezuelan exports and left very little
carry-over to be exported this year.
Internal consumption of . coffee in Venezuela is estimated currently
at approximately 250,000 bags annually. A shortage of coffee for local
use developed early in 19^-9 with a consequent rise in domestic prices of
roasted coffee. This shortage will continue until the new harvest begins
ANGOLA'S 19^9 COFFEE
Angola's 19^9 coffee crop is estimated at 733,000 bags, compared
with 621,000 bags in 19^3, 776,000 bags in 19^7, and a prewar (1935-39)
average of 300,000 bags, according to the American Consulate in Luanda.
The increase in the current year's production is attributed to abundant
rain during the flowering season. The trees usually blossom in September
at the beginning of the rainy season, and the coffee is harvested from
May to July.
Coffee is Angola's most valuable export commodity. A3 domestic
consumption amounts to around 50,000 bags annually, the 19^9 crop should
supply about 680,000 bags for export. Portugal, the United States, and
September 5, 19^9
Foreign Crops and Markets
the Netherlands are the principal markets for coffee produced in Angola.
During the past. 3 years, the United. States lias been the destination for
nearly a third of Angola's total coffee shipments- of approximately
2,i+00,000 hags. - ■ /« ■ - ;
CACAO PRODUCTION IN ■ 'A ' " " : -
NEW HEBRIDES DECLINING ••' • • •
At the present time, cacao production in the New Hebrides is less than
a third as high as it was before the war, according to the American Consulate
The cultivation of cacao was begun in the New Hebrides about 30 years
ago. Production climbed rapidly, and exports of cacao beans reached a peak _»
of 5.3 million pounds in 1927. Exports declined to an average of k.l mil-
lion pounds annually in the period 1930-3^, 3.9 million in 1935-39, and 3.h
million in 19k0-kk-> They dropped to 2.0 million pounds by 19*1-7 and to 1.2
million pounds in 19^8. ■
The principal reason for the decline in cacao production is the acute
shortage of labor. Cacao labor requirements are highly seasonal, and the
labor has been used mainly for production of copra, which- to date has been
a more lucrative crop than cacao beans. At the present wages being paid
labor, it is extremely costly to keep the brush and vines cleared from the
planted areas, and some owners are abandoning fully developed cacao planta-
tions and turning to other crops.
There are now about 1 million cacao trees planted on approximately
10 thousand acres. The area available for expansion of cacao production
is immense. Nearly 900 thousand acres in the New Hebrides are suitable
for cultivation, and much of this land could grow cacao trees. However,
no new areas are being planted in cacao, and many existing cacao planta-
tions are being badly neglected.
FATS AND OILS
ARGENTINA MAKES SIGNIFICANT
CHANGES IN OILSEED POLICIES l/
Two significant developments have taken place in the Argentine
vegetable oilseed situation. One is the Government's agreement to ex-
port flaxseed to the United Kingdom after July 1, 1950. The other is
the removal of subsidies on edible oils for domestic consumption. This
is expected to reverse the upward consumption trend and increase the
exportable quantity of edible oils by 125,000 metric tons (138,000 short
l/ A more extensive statement based on a report submitted by C. A. Boonstra,
American Embassy, Buenos Aires, may be obtained from the Office of Foreign
Foreign Crops aiidJ4arkets
Vol. 59, No. 10
The Anglo -Argentine trade agreement., signed June 27, 1949, is of
major significance to the oilaeed trade. The United Kingdom has already-
purchased 40,000 metric tons (44,000 short tons) of linseed oil, which
is the first large sale in the current year, and eventually may take a
total of 110,000 metric tons. In an exchange of notes following the
signing of the trade agreement, Argentina; after July 1, 1950, is to
supply the United Kingdom a quantity of flaxseed in the proportion of 30
percent of the total aggregate value of the United Kingdom's annual
purchases of Argentine flaxseed and linseed oil. This commitment will
become effective earlier if Argentina previous^ exports flaxseed to any
destination. The British were anxious to obtain flaxseed this year but
Argentina would not agree until a portion of the accumulated oil had
United Kingdom's purchase of 1+0,000 tons of linseed oil was made at
93 pounds sterling per metric ton, f.o.b. bulk at Buenos Aires. At the
exchange rate of 13.53 pesos to the pound sterling the price amounts to
1.25 pesos per kilogram (l6.9 U.S. cents per pound). . This is a sharp
drop from the previous quotation of 1.60 pesos (21.6 cents).
Argentina's problem of moving surplus edible oils into world markets
during the coming year is considered solely a question of price. Markets
are claimed for the quantity available for export provided that IAPI meets
price competition from other sources. Provision is made in the new agree-
ment for the United Kingdom to purchase edible oils up to a maximum value
of 9 million pounds sterling. So far the price per unit has not been
Official estimates for 1949 oilseed crops have not been released, but
reliable trade sources indicate a record sunflower seed output of 1.2
million short tons. Peanut production of 132,000 tons was smaller than
anticipated. Commercial cottonseed production is estimated at 200,000
tons. These crops were harvested during March-May of this year.
Planting for 1949-50 flaxseed is now in progress, but the season has
not advanced sufficiently to provide much information on the prospective
acreage. Last June the Minister of Agriculture asked growers to increase
wheat seedings and to maintain their flaxseed plantings. The assumption
is that about 3.2 million acres will be planted compared with 5 to 7 mil-
lion acres in prewar years.
ANGOLA EXPECTS LARGER
Angola's production of palm oil and oleaginous materials during the
1949-50 season is unofficially forecast at approximately 82,700 short tons,
according to a report from the American Embassy, Luanda, This would be a
63 percent increase over the 1948-49 output of 50,700 tons which was only
70 percent of the normal yield u
Angola produces sizeable quantities of palm kernels and palm oil,
castor beans, peanuts, cottonseed, and sesame seed. As the palm tree grows
wild cn the coastal plain, considerable quantities of palm oil are pre-
pared by the natives for their own use. Practically all of the palm
kernels harvested are exported.
September 5, 1949
Foreign Crops and Markets
Exports of oils and oilseeds during 1948 amounted to less than
33,000 tons compared with 40,000 in 19^7 and only about 16,000 prewar
(see table). European countries were the principal recipients.
Commercial stocks of the 1948 crop of oilseeds are practically ex-
hausted. Oil and oilseeds from the 1949 production are now accumulating
at plantations in the interior.
Prices on shipments to Lisbon are quoted as follows: palm oil,
6.00 angolares per kilogram ($220.00 per 3hort ton); palm kernels, 2.50
($91.60); peanuts, 4.00 ' (§146.50) ; castor beans, 2.70 ($98.90); sesame
seed 4 a 00 ($146.50); and cottonseed 1.10 ($40.30).
Due to expected price decreases, the Angolan Government has reduced
export duties from 20 percent to 10 percent on palm oil from plantations
and 15 percent on oil of native production. Steps have also been taken
to amend certain legislative measures of last year which imposed special
taxes on exports of oleaginous products and to decrease excess-profits
taxes on exports.
ANGOLA: Exports of vegetable oils and oilseeds, 1948
: 1948 1/
Palm kernels. . .
Castor beans . . .
! ' 560
: 2/ 773
l/ Preliminary. 2/ 4-year average. 3/ Negligible, if any.
American Embassy, ^uanda.
PAKISTAN HAH VESTS
SMALLER FLAXSEED CHOP
Pakistan's 1948-49 flaxseed harvest i3 reported at 472,000 bushels
from 74,000 acres compared with 512,000 bushels, from an equivalent acreage
^n 1947-48. The production decrease of 8 percent, resulting entirely
from decreased output in East Bengal, was due to a slightly smaller acreage,
excessive rains in November, and drought thereafter.
Foreign Crops and Markets
Vol. 59, No. 10
LIVESTOCK AMD ANIMAL PRODUCTS
HOG- SITUATION IN ARGENTINA
APPEARS BRIGHTER l/
The Anglo -Argentine agreement signed in June of this year includes
a provision for the sale of hog products and offals to the United Kingdom
with definite quantities and prices to he determined by pending negotia-
tions in London. The maximum quantity of pork tc he shipped during the
year, however, is "based on 10 percent of the 300,000 long tons of beef and
mutton established in the agreement which means that 30,000 long tons of
these products would be acceptable to the British.
Obviously, it is too early to determine what effect the new export
agreement will have on farrowings. Present opinion is that actual pork
shipments will fall short of the new goal for at least the next two years,
principally because of the relatively low number of hogs in Argentina,
Trade sources indicate that exports of hog products may not begin before
October of this year.
The Government recently authorized livestock producers to feed large
stocks of insect -damaged corn and bran at 8 and 9 pesos ($2.38 and $2.68),
respectively, per 100 kilos (220.46 pounds). Such stocks are reported
to be relatively large and practically non-exportable. New corn is
priced from 11 to Ik pesos ($3.27 to $4.17), respectively, per 100 kilos
depending on location of grain' terminal to. feeder „ With a surplus corn
supply on hand and an export outlook for pork to the United Kingdom, the
hog industry of Argentina can be expected to be considerably stimulated.
If the prices are revised upward, it is expected that, the majority
of. hog producers will build up their brooding herds and generally step
up the farrowing program. Considerable interest has been reflected at
purebred sales held in connection with the Rosario livestock exposition.
The small hog producers contribute about two -thirds of the hogs marketed.
This group is expected to increase their herds if prices are somewhat
higher, but the larger producers will require a higher price to induce
them to expand their operations. The large operators' expenses and
labor difficulties make operating costs higher than those of the smaller
operators who utilize family labor.
U.K. LIVESTOCK NUMBERS
CONTINUE POSTWAR INCREASE
Livestock numbers, except for horses, in the United Kingdom show an
increase over a year earlier. Cattle and calf numbers were more than h
percent larger than those of Juno a year ago and are now 16 percent above
the 1936-40 prewar average. Although hog numbers were only slightly
larger than the preceding year, present numbers are less than half of
the 1936 -kO average.
1/ Eased on a report from George L. Dietz, American Embassy, Buenos Aires.
September 5, 19^9
Foreign Crops and Markets
Horse numbers continue to decline and are a little over half of
prewar. Sheep numbers, on the other hand, were about 7 percent higher
in June of this year, but only 75 percent of prewar. Chicken numbers
also continued to show a considerable increase over June 19^8 and pre-
UNITED KINGDOM: Livestock numbers in June 19^9,
• with comparisons
Compiled from official sources.
Argentine cattlemen, according to a recent report, have received
the new schedule of beef prices based on the recently signed Anglo-
Argentine agreement. These prices are retroactive on export deliveries
to April 1 of this year. For the better quality export steers, the
prices are calculated to be 'Jk centavos per live kilo (10 cents per
pound), compared with centavos (7.3 cents per pound) prevailing for
the past two years.
The official schedule provides for a system of discounts for over-
fat cattle. This appears to be a method by which producers are penalized
for holding back stock pending the higher prices anticipated in the recent
Generally, it is believed that the new prices will be sufficient
to maintain the industry despite the producer's contentions that the
cost of production is 96 centavos (13 cents per pound). Considerable
interest was evident at the annual Palermo livestock exposition where
the prices paid for prize -winning cattle were much higher for similar
animals than last year.
Foreign Crops and Markets Vol. 59, No. 10
NSW ZEALAND BUTTERFAT
New Zealand dairymen will receive 46.88 cents a pound for
butterfat made into "butter and 50.2 cents a pound for butterfat
used in making cheese during the 1949-50 season effective August l s
1949. The new price is an increase of 2,48 cents per pound higher
than last season's guaranteed price, and .16 cents above the price
paid during the months of June and July 1949.
The New Zealand Dairy Products Marketing Commission is paying
the following prices for "butter and cheese in New Zealand:
Butter- - - - 93-93J points 42.94 cents per pound
Cheese- - - - 92-923-' points 23.6*1- cents per pound
FRENCH DAIRY SUPPLIES
AFFECTED BY DROUGHT
French protests against living costs have prompted the French
Ministry of Agriculture to announce that immediate imports, es-
pecially of dairy products, will "be made to compensate for drought -
reduced domestic production.
Under existing trade agreements, some Dutch "butter and cheese
have been available in France. However, the following list of
imports will be made in the immediate future, in an attempt to
supply domestic needs and reduce prices and black market activities
which have risen as a result of the short supplies.
9,200 tons of Dutch butter
4,000 tons of Dutch cheese
4,290 tons of Danish butter
800 tons of Swi3s cheese
Poor pastures and a probable winter forage shortage resulting
from the continued drought this summer have caused considerable
liquidation of cattle. Immediate rains could give temporary relief
but short winter forage supplies will cause the selling of cattle
later, or substantial imports of winter feeds will bo necessary.
September 5, 1949 Foreign Crops and Markets 235
COTTON AND OTHER FIBER' '
COTTON -PRICE QUOTATIONS.
ON FOREIGN MARKETS _ '
The following table shows certain cotton-price quotations on foreign markets
converted at current rates of exchange.
COTTON: Spot prices in certain foreign markets, and the
U.S. gulf -port average
Market location, :Date
kind, and quality :1949
Ashmouni , Good : 9-1
Ashmouni , F.G.F : n
Kama V., Good : "
Karnak, F.G.F • : M
Bombay : ...
Jar i la, Fine : 9~1
Broach, Fine : ff
4F Punjab, S.G. , Fine :g~31
28 9F Sind, S.G.,, Fine : »
289F Punjab, S .G. , Fine . . . : »
Buenos Aires . :
Type 3 : 9-1
Tanguis, Type 5 :S~31
Pima, Type I : n
Mata, Type 4. . : 9-1
Sertao, Type 5 : "
Sao Paulo :
Sao Paulo, Type 5 : 9~1
Torre on :
Middling, 15/16" :
Hous t on -Ga Ives ton -New :
Orleans av. Mid. 15/16" . . . : 9-1
Mo trie ton
5L95 : ^3.32
50.20 : U1.S6
1/ 4000. 00
Quotations of foreign markets reported by cable from U. S. Foreign Service posts
abroad. U. S. quotations from designated spot markets.
Foreign-Crops, and Markets Vol. 59, No. 10
CHINESE COTTON CONSUMPTION
DECLINES IN 19kS-k9
Cotton mill consumption in China has been estimated at 1,850,000'
bales (480 pounds net) for the 1948-^9 season^ or a decline from
2,030,000 bales in the previous season and 2,500,000 bales in the pre-
war period. These figures do not include an estimated; 1948-49 con-
sumption of 1,250,000 bales in home industries, such as hand spinning,
mattresses, and padding for clothing. ' ...
The decline in cotton mill consumption has been due principally
to interruptions of mill operations by military activities and the
shortages of power and raw cotton. The Coastal blockade by the
Nationalists, disruption of river transportation by floods, and the
limited capacity of the railroads have handicapped the moving of raw
materials to the mills and finished goods to the interior. Financial
difficulties have also handicapped the restoration of oormal marketing
activities. - .. .
■ .-.Cotton mills; in the interior have been able' to maintain operations
at a fairly high level due to easier. access to domestic" cotton supplies
The mjlls., however, in the Shanghai area, which has about 45 percent- of
.Chinafs'- operable spindles, face a critical -.situation*. Due to lack of
power and of raw cotton, Shanghai mills were forced to' cut' operations
r from 15 "to 16 shifts early in the season, to 8. shifts in June and to 6 -
shifts in July. Cotton consumption has been reduced from 135 /°0° to
142,000 bales per- month to an estimated £5 ,000 bales in July. Latest
reports indicate that still- greater curtailment in operation will be
necessary unless China can secure additional cotton imports to supple-
ment available supplies until the new crop starts moving in volume in
November . ' ... .
Stocks of cotton in the Shanghai, area on June 1, 194'9",' were reported
at about 165,000 -bales. Strong efforts are being made to secure ad-
ditional, old-crop cotton from the interior but considering the problems
of transportation and other, factors, it is estimated that hardly more
than : 100., 000 bales of the old crop oan b^e -collected from the interior
in the 2 or 3 months . '
Therefore assuming cotton mill consumption of 70,000 bales in June
and 5^,000 in July, it is apparent that .consumption must be- reduced
even further if more imports cannot be secured from outside sources-.
The 1949-50 cotton crop, on which harvesting is Just starting, is
expected to be smaller than the 2,115,000 bales harvested last season.
The spring drought in north China and recent floods in central China
have reduced both acreage and yields in China this season. Farmers -
have also considered food crops more important than cotton.
September 5, 19^9
Foreign Crops and Markets
In view of the short .I9U9-5O cotton crop, the small stocks both at
mills and in the interior, the large demands of the home industries
.which took an estimated 1,250,000 bales in the past season, and the
continued difficulties in collections and transportation, supplies of
domestic cotton for the coastal mills will fall far short of require-
ments in 1949-50.
Without raw cotton imports it is estimated the mills will have
to curtail operation in the I949-5O season by 1+5 percent over last
season. It is evident, therefore, that the Chinese Communists are in
desperate need of additional raw. cotton imports. The possibilities
of supplying such needs, however, now seem meager. No appreciable
fraction of the foreign exchange necessary for such purchases is in
sight, and the closure of ports further hinders imports or barter
This year's reduction In food crops owing to floods and drought
may make it necessary to plant more food crops next year at the expense
of cotton. Thus, it seems probable China will not be able to increase
its cotton acreage for at least two more seasons because of the demand
on available acreage for food crops .
..Philippine consumption of raw cotton for the 19^8-49 season was
3,727 bales (500 pounds gross weight) as compared to 7,131 bales for
the previous season, according to Douglas M. Crawford, Agricultural
Attache, American Embassy, .Manila.
The reduced consumption has been blamed upon inability of the
National Textile Mill to compete with imported textiles. During the
last k or 5 months the mill has been operating at only about one -third of
capacity. The Philippine Government, however, has started an investi-
gation of the management of the mill, and it is believed the accumula-
tion of large textile stocks in the mill warehouses may be due more to
mismanagement rather than an inability to meet prices of imported goods .
The National Textile Mill is expected to produce yard goods in a larger
volume during the I9I+9-5O season, especially if import restrictions on
textiles are extended.
The Philippine Government has recently let a contract for the
construction of a textile plant at Narvacan, Ilocos Sur . This plant
;wlll- be primarily for the production of cotton yarns for use in the
home -weaving industry of the Ilocos Provinces. Apparently some of the
surplus- spindles in the National Development Company's plant in Manila
will be used. It. is hoped the establishment of a mill in Ilocos, the
main cotton-growing. area of the Philippines, will encourage the ex-
pansion of cotton production.
- Foreign Grpps and Markets
Vol. 59, No. 10
The Philippines scoured most of. their cotton imports from the
United States in the past season. Imports in the 19^8-^9 season
amounted to 2,790 bales and local domestic production hhO bales. Most
of the local production is consumed in the homes.
ITALIAN SILK INDUSTRY
Notwithstanding the general economic improvement in Italy, the
Italian silk industry , made little progress toward recovery during the
first half of 19^9,. according to a recent -report from the American
Vice Consul at Milan.
Cocoon production during the year, is expected to total about 22
million pounds compared with about 21 million (the lowest in 50 years)
in 1946; 59 million in 19^7; and a prewar average of 66 million pounds .
Present cocoon production allows spinners work for only 3 months of the
year, thus contributing to higher production costs.
The number of spinning mills which have had to shut down has in-
creased during the first half of 19^9. The relatively low cocoon pro-
duction and the difference claimed between production costs and the
market price of raw silk are given as the reasons for closing down.
The current market price of raw silk is claimed to be approximately 18
percent below the total cost of production, including the purchase of
cocoons and the process of spinning. At the end of June Italian raw
silk was offered at approximately $4 w 00 per pound.
The Italian raw silk industry is dependent almost exclusively on
domestic production of cocoons. About 2.2 million pounds of silk can
be produced from the 22 million pounds of cocoons at the usual Italian
ratio of 1 to 10. No additional production is expected because imports
of cocoons from Turkey, Bulgaria, Greece, and Soviet Russia are no
Italian consumption of raw silk is estimated at amounts varying
from about 1 to 2 million pounds annually. -.
Stocks of .silk were reported by the Italian National Silk Organi-
zation (Ente Nazionale Serico) as having decreased from roughly 2.5
million pounds at the beginning of 19^9 to about 1.8 million by the
end of Juno. ... ^-^j.- •»>.•..• . ■ --..r .-.•<* :•_ •'
Exports of raw silk in the first 5 months of 19^9 totaled only
303, uOQ pounds compared with 1,920,000 pounds during the corresponding
period of 19^8.- Prewar exports averaged more than 5 million pounds
annually, Of the. 19^+9 exports, about 20, percent were shipped to the
Jni ted States, 2V> percent to Egypt, 17 percent to France, 8 percent to
Switzerland, 7 porcent to Argentina, 5 percent each to. Pakistan and
Great Britain, k porcent each to Austria and Germany and the remaining
2 percent to various other European, Asiatic, and African countries.
September 5, 1949 Foreign Crops and Markets
Foreign trade in raw silk has suffered considerably from Japanese
competition. It is reported that quotas established in trade agreements
of Italy with other European countries will in many cases go unfulfilled
because of the availability of cheaper raw silk from Japan, Exports to
India have suffered particularly since a new Japanese exchange policy
allows acceptance of pounds sterling in payment for exports from that
country. The present situation does not seem encouraging for Italy as
an exporter of raw silk in the future. The Government apparently is
taking no definite measures at this time either to encourage or protect
the industry. If conditions do not improve it is possible that the
Italian position in the world raw silk industry will change from -an
exporting to an importing nation.
The following table shows revised Italian export data for exports
of raw thrown silk by countries in 1948 compared with 1947 and 1938.
ITALY: Exports of raw thrown silk, by countries of destination,
.calendar years 1938, 1947, and 1948
Country of destination
: : 92 - • i
• 2,094' -■'
In contrast with the sharp decline in exports of raw silk, there
was a slight increase in exports of silk manufactures in early 1949-
Silk fabrics doubled in both quantity and value in the first 3 months
compared with the first 3 months of 1948. The greatest increase was in
exports to the United states, but those to Egypt, France, and Canada also
showed some increase in value. The greatest decrease was in exports to Argentina
Foreign Crops and Markets Vol. 59, No. 10
Exports of silk waste in the 19^9 period more than doubled in
value, and there were increases also, in exports of mixed silk fabrics
' and waste silk yarn. Silk thread was the only manufactured silk item
"which showed a decrease for the period.
The exports of Italian silk and silk- manufacturers for the year 1948,
compared with the preceding year and a prewar year, are shown in the
ITALY; Exports of silk and' silk manufactures, totals and to the
• • United States, by calendar years 1938, 19*4-7 and 1948
Calendar years .
Raw thrown silk?
Total exported . . . . . ... .
United "States . ./. . .. . ; ...
Dyed thrown silk;
Total exported . -. ...
i. - - •
0 • • - '
Waste silk yarns;
: • 3/
! 904 : • ■ -
- • ■ -230 ' • •
Bourrette yarns :
Sewing thread of silk
and siik waste :
\ 26 ■
Silk textiles :
• • 460 .' ' • •
!.:. .;. . Mi ' ' '
\ ... - • -298
: 55 *1
Silk mixture textiles:
: - ; 206 . ...
Other silk textiles and
• "330- • .-.